Close Close

Practice Management > Building Your Business

Treasury Releases Small-Business Loan Guidance for Independent Contractors

Your article was successfully shared with the contacts you provided.

The Treasury Department on Tuesday released guidance on how lenders can process independent contractors and gig economy workers for Paycheck Protection Program (PPP) — providing a much-needed path to loans for these groups.

Sen. Marco Rubio, R-Fla., tweeted that the just-released 19-page guidance “answers virtually ALL of the big remaining questions we had from lenders.”

As of close of business on Monday, 4,662 lenders have approved $242 billion in PPP loans for more than 1 million businesses, Rubio tweeted.

Leon LaBrecque, chief growth officer at Sequoia Financial Group in Troy, Michigan, said the guidance “is helpful on the issue of Schedule C filers. Now sole proprietors, independent contractors and gig workers can clearly have a path getting a much-needed PPP.”

(Free Webinar on April 16: Stimulus Plan Update: Tax Impact of Early Withdrawals & RMD Waivers)

The guidance, he added is “overdue, but [provides] much clearer direction.”

The PPP, established by the Coronavirus Aid, Relief and Economic Security (CARES) Act, is implemented by the Small Business Administration with support from Treasury.

— Check out FINRA Clarifies Disclosure Rules for PPP Loans on ThinkAdvisor.


© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.